Should You Keep Your Day Job When You Begin Working From Home?

Whenever you start a new business venture there is a risk involved.   Many people dream of starting their own home based business.  The entrepreneur may wonder if he should continue his present job while starting out with his own business venture or if he should devote all of his time to the new enterprise.  You don’t want to run the risk of creating a financial problem for the family.  You need to proceed with caution. 12150102_xxl

Every company no matter whether it is large or small needs a business plan.  You need to sit down and evaluate the risk and the potential gain to be derived from your potential business.

Start by asking yourself a few questions and answering these questions honestly.  First, if you quit your present job do you have enough funds available to sustain your household needs.  You need to realize that your new business might not provide the income necessary to sustain the household so you will need funding available other than from this new business venture.

How are you going to fund this new business?  The advantage of a home based business is that the overhead is usually small.  However, you do not want to fund your business by depleting your hard earned savings account.  Before diving into your savings account use your business plan to seek capital from a financial institution.

Plan for unexpected expenses.  Unfortunately, some people start a business without any idea of the amount of money they will need to spend for unforeseen situations.  You need to factor in additional capital for things such as contracted services and upgraded equipment.  You do not want the lack of funds to undermine your new business.

Are you able to multi-task successfully?  In the beginning you will be the person at your business who is responsible for everything.  That can include taking the orders and filling them, networking, advertising, handling customer service calls, handling the billing and collections, handling any correspondence and any shipping and anything else that needs to be done.  In order to grow your business everything will need to be done efficiently and correctly and in a timely manner.

Do you have the knowledge necessary to successfully run your business?  Everyone has his own strengths and weaknesses.  When you run a business it is the weaknesses that will determine how strong your company will be.  If you don’t know much about internet marketing or SEO and are starting an internet business, then you will either have to hire someone who knows the business or take the time to learn the techniques yourself.  You can cripple your business promotions if you are weak in this area.  Before you start your business make sure you know all aspects of that business and can perform them yourself.

The realistic way for most people to begin a home based business is to work the business part time in the beginning while retaining a day job.  Once you are established and have gained clients and have a feel for the operation of your business then you can consider whether or not you are successful enough to maintain your current standard of living.  When you can support the family with your own business enterprise then it might be time to give up your day job and devote full time to your business venture.